ipo

What are the advantages and disadvantages for a company to list on the ASX?

The main reason a company would want to list on the stock market is to accumulate more capital to grow. They may have exhausted debt options and have chosen a capital raising. In this article we discuss the advantages and disadvantages of a company listing on the exchange. Advantages of IPOs It can be good PR for the company as the IPO can create a lot of media interest and bring the company brand to the general public. The capital …

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The Basics of an Initial Public Offer (IPO)

IPO Definition An initial public offering (IPO) is when a private company first offers stock to the public as it becomes a publicly traded company. These companies undergo IPOs to grow their business, and they need to raise capital to do so. IPOs are also a cost-efficient way to finance growth objectives. When companies sell shares to the public, they increase their equity. This improves the company’s debt to equity ratio, which will improve their ability to borrow funds if …

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